How It Works

The Montana Income Tax Credit for Endowed Philanthropy.

Originally enacted in 1977, the Montana Tax Credit for Endowed Philanthropy encourages charitable giving to qualified endowments by offering incentives to Montana taxpayers. An endowment is a fund held by a tax-exempt organization where the principal of the fund is not wholly expendable. Only the interest and appreciation earned in an endowment fund can be used for current operations. Endowments are established to help Montanans meet long-term needs in our communities for education, social services, health care, economic development, the arts and more.

From July 1, 2003 to December 31, 2007

Planned Gift: Credit against state income tax liability in the amount of 40% of the present value of any planned gift to a permanent endowment of a Montana charity up to a maximum amount of $10,000 per year per taxpayer. (Applies to individual or business entity taxpayers.)

Outright Gift: Credit against state income tax liability in the amount of 20% of the present value of any outright gift to a permanent endowment of a Montana charity up to a maximum of $10,000 per year per taxpayer. (Applies to corporations, partnership or limited liability company taxpayers.)

What are Planned Gifts?

- Charitable Remainder Trusts

- Pooled Income Fund Trusts

- Charitable Lead Trusts

- Charitable Gift Annuity

- Deferred Charitable Gift Annuity

- Paid Up Life Insurance Policy